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CAR

carsales.comASX:CAR Stock Report

Market Cap

AU$6.9b

7D

1.2%

1Y

15.7%

Updated

25 Oct, 2021

Data

Company Financials +
CAR fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance4/6
Financial Health6/6
Dividends3/6

CAR Overview

carsales.com Ltd operates online automotive, motorcycle, and marine classifieds business in Australia, Brazil, South Korea, Malaysia, Indonesia, Thailand, Chile, China, Argentina, and Mexico.

Price History & Performance

Summary of all time highs, changes and price drops for carsales.com
Historical stock prices
Current Share PriceAU$24.58
52 Week HighAU$16.72
52 Week LowAU$26.67
Beta0.89
1 Month Change-2.96%
3 Month Change13.38%
1 Year Change15.73%
3 Year Change97.91%
5 Year Change131.23%
Change since IPO516.04%

Recent News & Updates

Oct 22
Here's Why carsales.com Ltd's (ASX:CAR) CEO Compensation Is The Least Of Shareholders' Concerns

Here's Why carsales.com Ltd's (ASX:CAR) CEO Compensation Is The Least Of Shareholders' Concerns

The share price of carsales.com Ltd ( ASX:CAR ) has increased significantly over the past few years. However, the...

Sep 06
What Does carsales.com Ltd's (ASX:CAR) Share Price Indicate?

What Does carsales.com Ltd's (ASX:CAR) Share Price Indicate?

carsales.com Ltd ( ASX:CAR ), might not be a large cap stock, but it saw a significant share price rise of over 20% in...

Shareholder Returns

CARAU Interactive Media and ServicesAU Market
7D1.2%2.9%0.6%
1Y15.7%30.2%21.3%

Return vs Industry: CAR underperformed the Australian Interactive Media and Services industry which returned 30.2% over the past year.

Return vs Market: CAR underperformed the Australian Market which returned 21.3% over the past year.

Price Volatility

Is CAR's price volatile compared to industry and market?
CAR volatility
CAR Beta0.89
Industry Beta1.03
Market Beta1

Stable Share Price: CAR is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: CAR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19961,200Cameron McIntyrehttps://www.carsales.com.au

carsales.com Ltd operates online automotive, motorcycle, and marine classifieds business in Australia, Brazil, South Korea, Malaysia, Indonesia, Thailand, Chile, China, Argentina, and Mexico. The company operates in Online Advertising Services; Data, Research and Services; Latin America; and Asia segments. The Online Advertising Services segment offers classified advertising that allows private and dealer customers to advertise automotive and non-automotive goods and services for sale across the carsales network; and products, including subscriptions, lead fees, listing fees, and priority placement services.

carsales.com Fundamentals Summary

How do carsales.com's earnings and revenue compare to its market cap?
CAR fundamental statistics
Market CapAU$6.95b
Earnings (TTM)AU$130.70m
Revenue (TTM)AU$427.16m

53.1x

P/E Ratio

16.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CAR income statement (TTM)
RevenueAU$427.16m
Cost of RevenueAU$59.51m
Gross ProfitAU$367.66m
ExpensesAU$236.95m
EarningsAU$130.70m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.46
Gross Margin86.07%
Net Profit Margin30.60%
Debt/Equity Ratio4.6%

How did CAR perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

90%

Payout Ratio

Valuation

Is carsales.com undervalued compared to its fair value and its price relative to the market?

53.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CAR (A$24.58) is trading above our estimate of fair value (A$19.81)

Significantly Below Fair Value: CAR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CAR is good value based on its PE Ratio (53.1x) compared to the Australian Interactive Media and Services industry average (60.4x).

PE vs Market: CAR is poor value based on its PE Ratio (53.1x) compared to the Australian market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: CAR is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: CAR's PB Ratio (7.4x) is in line with the AU Interactive Media and Services industry average.


Future Growth

How is carsales.com forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CAR's forecast earnings growth (14.3% per year) is above the savings rate (1.9%).

Earnings vs Market: CAR's earnings (14.3% per year) are forecast to grow faster than the Australian market (11.5% per year).

High Growth Earnings: CAR's earnings are forecast to grow, but not significantly.

Revenue vs Market: CAR's revenue (8.3% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: CAR's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CAR's Return on Equity is forecast to be high in 3 years time (23%)


Past Performance

How has carsales.com performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CAR has high quality earnings.

Growing Profit Margin: CAR's current net profit margins (30.6%) are higher than last year (30.3%).


Past Earnings Growth Analysis

Earnings Trend: CAR's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: CAR's earnings growth over the past year (9.3%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: CAR earnings growth over the past year (9.3%) underperformed the Interactive Media and Services industry 10.8%.


Return on Equity

High ROE: CAR's Return on Equity (14%) is considered low.


Financial Health

How is carsales.com's financial position?


Financial Position Analysis

Short Term Liabilities: CAR's short term assets (A$364.4M) exceed its short term liabilities (A$86.2M).

Long Term Liabilities: CAR's short term assets (A$364.4M) exceed its long term liabilities (A$136.9M).


Debt to Equity History and Analysis

Debt Level: CAR's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: CAR's debt to equity ratio has reduced from 87.1% to 4.6% over the past 5 years.

Debt Coverage: CAR's debt is well covered by operating cash flow (458.7%).

Interest Coverage: CAR's interest payments on its debt are well covered by EBIT (21.4x coverage).


Balance Sheet


Dividend

What is carsales.com current dividend yield, its reliability and sustainability?

1.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CAR's dividend (1.93%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.23%).

High Dividend: CAR's dividend (1.93%) is low compared to the top 25% of dividend payers in the Australian market (5.3%).


Stability and Growth of Payments

Stable Dividend: CAR's dividends per share have been stable in the past 10 years.

Growing Dividend: CAR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.3%), CAR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CAR's dividends in 3 years are forecast to be covered by earnings (80.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Cameron McIntyre (50 yo)

4.75yrs

Tenure

AU$4,083,626

Compensation

Mr. Cameron McIntyre has been the Chief Executive Officer and Managing Director of carsales.com Ltd since March 17, 2017. Mr. McIntyre served as the Chief Operating Officer of carsales.com Ltd from October...


CEO Compensation Analysis

Compensation vs Market: Cameron's total compensation ($USD3.06M) is above average for companies of similar size in the Australian market ($USD2.35M).

Compensation vs Earnings: Cameron's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: CAR's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: CAR's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.7%.


Top Shareholders

Company Information

carsales.com Ltd's employee growth, exchange listings and data sources


Key Information

  • Name: carsales.com Ltd
  • Ticker: CAR
  • Exchange: ASX
  • Founded: 1996
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: AU$6.945b
  • Shares outstanding: 282.57m
  • Website: https://www.carsales.com.au

Number of Employees


Location

  • carsales.com Ltd
  • 449 Punt Road
  • Level 4
  • Melbourne
  • Victoria
  • 3121
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:50
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.